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ANNEX III.

Copy of Telegrams dated 12th February, 1941, from Sir Reginald Hoare (Bucharest) to the Foreign Office.

Nos. 319, 320, 321 and 322.

I have been struck in recent months by the optimistic references made by the Minister and British Broadcasting Corporation to German petroleum difficulties, present and future. Ministry of Economic Warfare summaries show the same tendency.

2.

I presume that full weight is given to reports I have been sending, which indicate that oil blockade is a long and not a short weapon, at any rate until there is active land warfare again and reserve stocks have been used up, also that German protective measures localise bomb damage to refinery and storage targets and it should not be forgotten Roumania has for long been the one country to which & rmn oil specialists make regular visits, and reports from here on the internal position in Germany are largely based on information indirectly obtained from them which is confirmed by friendly Roumanians and neutrals I therefore feel who have been in Germany on oil business. that it would be well if you could personally do something to prevent undue optimism.

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3 (and 4?).· I fully appreciate that the attacks on German oil supplies form an important feature of our policy and this leads me to emphasise the great importance of launching an effective attack on the Roumanian oil transport, refineries and stocks as soon as possible after my mission is withdrawan. The Ploesti refineries are still relatively vulnerable as the building of protective walls has not yet proceeded very far. Owing to the reduced winter exports, oil stocks are at a race level namely 1,400,000 tons for export, 100,000 tons army reserve

These stocks and 150,000 tons for inland consumption.

are concentrated for the relatively few points and are not yet protected by bricks and cemented walls.

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5. (sic.) Largely increased German oil export programme will soon come into force as (? grp. omitted: ? it)

is possible the Danube is navigable before end of February. Exports will shortly exceed production and will enable Germans to absorb the present Roumanian stocks within a certain period.

6. (sic.)

Attacks on such points as Campina, Ploesti, Giurgiu and Constanza could simultaneously be directed against railway facilities, stocks and installation and would therefore hamper German military preparations for a Near East drive.

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I therefore suggest that these objectives are now of greater importance than any oil targets in Germany or elsewhere.

7.

I have suggested that Berthoud should return forthwith to London to amplify the above views.

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